You're ignoring that all of this money initially came from massive investment by the Defense Advanced Projects Administration (DARPA) which funded the semiconductor industry in its infancy, which funded the creation of the Internet, which funded the creation of mainframes, which funded the creation of personal computers, and continues to provide massive funding to tech companies. Heck, their decision to choose Microsoft DOS over IBM OS/2 for the US DOD literally solidified its rise as the dominant operating system. It's requirement that all parts must be multi-source-able is why AMD and Via were created as additional manufacturers of x86 processors. But it also funded PowerPC and even provided significant funding to ARM.

Sure, we don't have much socialism here (USDA farm "subsidies" not included), but we do have very strong, protectionist-welfare capitalism.

So you had the combined might of the US government founding the creation of the computing industry. That let companies take massive risks which left tons of people making tons of money before private VC even really became interested. The IPOs of the original tech companies funded the creation of half of the current major VC funds.